BLAW Ch 11 MC
On Thursday, Trista Dylan receives a letter from Charlie Holmes offering to sell her a diamond ring and stating that: "if you choose to accept, you must do so prior to 2:00 p.m. tomorrow." Trista had a telegram of acceptance dispatched well before 2:00 p.m. on Friday but it is delivered to Charlie's home only at 2:15 p.m. Do Trista and Charlie have a binding contract?
Yes, because Trista dispatched the telegram prior to 2:00 p.m.
What does the term 'grumbling acceptance' mean?
Accepting an offer while complaining about the terms
Milner Developers proposed an offer to Henry Wright, an independent contractor, offering to hire him for their next project. They offered him a certain rate and specified the contract details along with describing the stipulated mode of acceptance but received no response. Wright responded to the offer after a delay of two months with a quote for a higher amount than that mentioned by Milner Developers. Do the two parties have a binding contract?
No, because Wright's letter was a counteroffer to the original offer.
Which of the following actions constitutes the acceptance of an offer?
Offeree reflected assent to the terms of the offer in the requisite manner
Which of the following considers a properly dispatched acceptance sent by a reasonable means of communication within a reasonable time to be effective on dispatch?
Restatement (Second)
Why does traditional contract law view any kind of an attempt by offerees to change terms as constituting a counteroffer?
Such an action implies a rejection of the offer by the offeree.
Judith George makes an offer to sell a plot of land using a normal letter and states no authorized means by which the offeree, Helga Holmes must respond if she accepts. If Helga accepts the offer using a normal letter, which of the following is true?
The acceptance is effective upon dispatch.
Arthur offered to sell his house to Mike for $50,000. Even before Mike responded to the offer, Jack learnt of the offer and called up Arthur to accept the offer. Jack's action represents a(n) _____.
offer
April Roberts ordered hundred 19-inch color television sets from Carl Soans and requested for a prompt shipment of the goods. Carl promptly shipped fifty 21-inch color television sets and fifty 19-inch color television sets without informing April that the shipment of nonconforming television sets was an accommodation. Which of the following is true?
There is an acceptance but Carl has breached the contract by shipping nonconforming television sets.
Ian Kendler makes Brian Hyson an offer for a plot of land. In the offer, Kendler stipulates that the acceptance of the offer must be sent by registered mail but Hyson mails his acceptance through the regular postal service. Which of the following is true? Assume that the Restatement (Second) of Contracts does not apply.
There is no acceptance and no contract.
How can courts prevent an offeror from revoking a unilateral contract once the offeree has started performance?
By holding that the offeree's performance has made it a bilateral contract
Which source of law requires the acceptance to be a "mirror image" of the offer in order to form a contract?
Common Law
The shipment of non-conforming goods intended as an accommodation to the buyer is a(n) _____.
counteroffer
Which of the following describes a stipulation?
An offeror's right to determine the manner of acceptance
Able Co. entered into a contract with Baker Co. for the sale of goods. Both parties are merchants under the UCC and each party used its own form as an offer and acceptance. On the reverse of each form, there were minor terms that conflicted with each other. What is impact of these minor differences in terms in the forms on the contract?
A contract does exist and it includes the terms agreed upon plus gap-fillers from the UCC.
Which of the following actions is considered to reflect a counteroffer?
A demand for additional terms
Which of the following is true regarding silence as an acceptance?
An offeree's silence is considered acceptance when he/she indicates so.
What can an offeror do to minimize the risk posed by the mailbox rule?
Include a receipt stipulation in the contract
What is the legal status of an improperly dispatched acceptance that was sent by a means of communication that was nonauthorized by the offeror?
It is effective when received.
In a contract for the sale of land, how close must the terms of the acceptance be to the terms of the offer, in order to form a contract?
They must be identical or almost identical.
Debbie Jones and Bill Schneider exchanged standard order forms to formalize their contract for a batch of goods and realized that their standard forms do not agree on material terms. Under UCC section 2-207, when will there be a contract? Assume that Bill did not make its acceptance conditional on Debbie's assent to any additional or different terms.
When Bill's form is a definite and seasonable expression of acceptance.
The original offeree is one who:
has the legal power to accept an offer and create a contract.
An ambiguous the offer may be accepted in any manner that is _____ in light of the circumstances.
reasonable
Rex Garner recently made an offer to Harry Barns for the sale of his shop using a registered letter. The offer says that Harry "may accept by registered letter" and this detail is an example of a _____.
stipulation
When the offeror, as the master of the offer, specifies the precise time, place, and manner in which acceptance must be communicated, it is termed as _____.
stipulation
According to the Code, when there is an acceptance that contains terms that are different from the original terms of the contract, the contract will consist of _____ and the appropriate gap-filling presumptions of the Code.
terms on which the parties' writings agree
Under the mailbox rule, the acceptance of an offer is effective at the time the acceptance is dispatched unless:
the acceptance is not in the authorized mode of communication.
Which of the following would indicate a rejection under the mirror image rule?
Material changes to offer
You wish to download free software from the Internet. The download procedure includes a page titled "download now" that asks you to "please review" the licensing agreement that is available to you on another web page. The "download now" page has a button that initiates the download process. You click that button without going to the licensing agreement page and find that it contains an arbitration provision. Are you bound by this provision?
No, because you did not perform an action that indicated your assent to the licensing agreement.
Which of the following is true regarding the approach taken by the UCC toward the proper means of acceptance and the implications of using it or not using it?
The UCC does not change the traditional rule that, where the offer stipulates a certain means of acceptance, the acceptance must use that means or there is no contract.
Which of the following conditions can prevent additional terms from becoming a part of a contract formed between parties who are merchants?
The offer expressly limits acceptance to its own terms.
Sue Sandon and Joe Rhine have concluded their agreement in all substantial matters of their contract for goods offer like price, quantity, and mode of delivery but the formal written agreement has not been signed yet. Is there a binding contract at present?
Yes, because a contract is formed at the time the agreement is concluded.
An offer which is unclear about the form of acceptance that is necessary to create a contract, is called a(n) _____ offer.
ambiguous
Ian Sanders offered to sell his car to Beth Jones for $5,000 with Beth's agreement. Subsequently, Beth demanded that he provide new seat covers for the car as she was paying a rather heavy price for the car. Beth's response represents a(n) _____.
additional term
A bilateral contract is accepted by when the offeree:
makes the promise requested by the offer.
In determining whether an offeree accepted an offer, the court is looking for the same _____ on the part of the offeree that it found on the part of the offeror.
present intent to contract
In general, the mailbox rule is beneficial to:
the offeree.
